WILMINGTON, DE – The Delaware Court of Chancery in Wilmington, DE, has found in favor of Huntsman Corp. in the merger dispute with Apollo Management-owned Hexion Specialty Chemicals. Vice Chancellor Stephen Lamb rejected Hexion's claim that Huntsman was no longer suitable for purchase and ordered Hexion to comply with its $10.6 billion deal to acquire Huntsman. The Court ordered that if the closing does not occur by Oct. 1, the merger agreement termination date will be extended until the Court determines that Hexion has fully complied with the Court's order.
The court also determined that Hexion would be liable to Huntsman for damages not capped by the $325 million break-up fee if Hexion refuses to close. Huntsman continues to seek damages exceeding $3 billion in its Texas lawsuit against Apollo and its partners Leon Black and Joshua Harris.
In a statement issued by Hexion, the company said it was disappointed by the Court's decision and was reviewing its options.